BRK.B) generates returns that agitate the market in the long term, but more recently it has been difficult. There is no sugar coating: the Oracle of Omaha has crossed the current bear market. “Data-reactid =” 30 “> Warren Buffett’s Berkshire Hathaway (BRK.B) has long-term market returns. Long-term, but more recently this has been a struggle. There is no Coating Sugar: The Oracle of Omaha has had a rough ride through the current bear market.
The S&P 500, which has recovered somewhat from the depths, fell 18.8% from the market peak from February until April 8. The average return on all Warren Buffett stocks, however, was 28.0%.
Berkshire Hathaway wallet was built to outperform the market over the long term, not to thrive in a global pandemic. Many of Buffett’s best deeds in recent times have been more and more queuing games. He is hardly alone in this area, but Uncle Warren’s considerable holdings in financial services, one of the worst sectors on the market so far, have been particularly damaging. His property is at stake airline headlines have also been started. “data-reactid =” 32 “> The Berkshire Hathaway portfolio has been designed to outperform the market in the long term, not to thrive in a global pandemic. Most of the best Buffett stocks in recent times are more dynamic games that have He is hardly alone in this, but Uncle Warren’s considerable holdings in financial services, one of the worst sectors in the market so far, have been particularly detrimental. the main actions of the airlines was also started.
However, some of Berkshire’s holdings have fared better than the overall market – and a number of them are more recent positions, including some stocks that Buffett and his lieutenants picked up last year.
Here are the top 11 Warren Buffett stocks in the bear market. Some of these titles are proven old-school value names that you typically associate with the famous investor. Some of them, however, illustrate Berkshire’s slow but safe transition to more modern businesses.
Performance since February 19: -12.1% (versus -18.8% for the S&P 500)
LBTYA, $ 18.27) and class C (LBYTK, $ 17.30) equity – claims to be the world’s largest international broadband and television company, with operations in seven European countries. It is also one of many Berkshire bets on communications and media companies launched by billionaire trader John Malone. “Data-reactid =” 60 “> Liberty Global – which Buffett owns via its Class A (LBTYA, $ 18.27) and Class C (LBYTK, $ 17.30) shares – presents itself as the largest international company Television and broadband in the world, with operations in seven European countries. It is also one of many Berkshire bets on communications and media companies launched by billionaire trader John Malone.
The company’s positioning in broadband – a necessity almost before the coronavirus, but certainly more now that a large part of the world’s population is confined to their home – has helped it withstand part of the downturn in the market. bearish so far. Although its television operations are sure to take a hit thanks to the disadvantages of advertising.
NFLX“data-reactid =” 62 “> Rumors have it that the company bought Univision for $ 9 billion, but CEO Mike Fries shot it down in February in the company’s latest quarterly report. However, Liberty Global plans to extend its international partnership with Netflix (NFLX).
Berkshire first purchased the Class A shares in the fourth quarter of 2013. The holding company then recovered the non-voting Class C shares a quarter later. S&P Global Market Intelligence data shows that Berkshire Hathaway has a collective interest of 3.7% in Liberty Global. Berkshire is also the fifth largest shareholder in Liberty.
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Market value: $ 9.7 billion
Dividend yield: N / A
Percentage of the portfolio: 1.20%
Date of first acquisition: Q4 2011
Performance since February 19: -10.0%
DVA, $ 76.96), which provides kidney care and operates dialysis centers, serves patients through more than 3,000 dialysis centers in the United States and nine other countries. Aging baby boomers and a graying population in many developed markets should provide society with a strong and age-old tailwind. “Data-reactid =” 93 “> DaVita (DVA, $ 76.96), which provides kidney care and operates dialysis centers, serves patients through more than 3,000 dialysis centers in the United States and in nine other countries. Aging baby boomers and a graying population in many developed markets are expected to provide society with a strong secular tailwind.
recently urging hospitals and other health systems not to limit care to patients with end-stage renal disease suffering from coronavirus. “data-reactid =” 94 “> Naturally, dialysis is a health care treatment that simply cannot go the way of the road, regardless of current health care In fact, society advocates for its patients for the pandemic, recently urging hospitals and other health systems not to limit the care of patients with end-stage renal disease suffering from coronavirus.
Berkshire unveiled a position in DaVita in the first quarter of 2012. Since DVA was an important position on the Ted Weschler peninsula in its days before Berkshire, it was not unreasonable to assume that it was its choice . And Weschler confirmed it two years later.
Buffett has not touched the position for years, but Berkshire remains DaVita’s largest shareholder by a large margin. Its 38.6 million shareholding represents more than 24% of the outstanding shares of DVA.
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Market value: $ 22.5 billion
Dividend yield: N / A
Percentage of the portfolio: 1.03%
Date of first acquisition: Q4 2012
Performance since February 19: -8.5%
VRSN, $ 193.20) continues. “Data-reactid =” 122 “> Warren Buffett’s good fortune with Verisign (VRSN, $ 193.20) continues.
Stocks are not good or bad in a bubble – a successful buy from one investor is often the biggest failure of another investor, depending on the time. The example of Verisign – an Internet infrastructure service company that literally keeps the world connected online and acts as a domain registry for .com, .net and other top-level domains – comes to mind.
the worst actions of “smart money” of all time. “data-reactid =” 124 “> Stanley Druckenmiller, a famous former hedge fund manager, shorted $ 200 million on tech stocks in early 1999 while investing in the George Soros quantum fund, but lost $ 600 million in trade. He then tried to win it back through a major $ 6 billion tech buyout, including Verisign … but lost $ 3 billion in six weeks. that VRSN and several other recent purchases have flopped, making it one of the worst “smart money” stock calls of all time.
But the Oracle of Omaha had an entirely different experience.
Berkshire bought Verisign, whose dominance in space illustrates Buffett’s love for deep moats, during a decline in the last quarter of 2012. Some 3.7 million shares were bought at average cost of $ 38.82 per share. VRSN has reported nearly 400% since the end of 2012, far more than triple the yield of around 124% of the S&P 500, including dividends.
This includes a fantastic period of outperformance as one of Buffett’s best stocks during the bear market. VRSN shares have lost just under 9% so far – half of the damage suffered by the S&P 500 since February 19.
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Market value: $ 284.2 billion
Dividend yield: 2.6%
Percentage of the portfolio: 0.02%
Date of first acquisition: Q1 2005
Performance since February 19: -8.2%
PG, $ 115.10) is one of Buffett’s best bets in the bear market. Thanks to home orders and similar orders in the United States and around the world, a large part of consumer spending was concentrated on the essentials – food, toiletries and others – produced by stocks of current consumption. “data-reactid =” 153 “> It’s no surprise that Procter & Gamble (PG, $ 115.10) is one of Buffett’s best bets in the bear market. Thanks to home orders and the like in the States United States and around the world, a large part of consumer spending has been concentrated on the essentials – food, toiletries and the like – produced by stocks of current consumption.
As a result, Procter & Gamble – the name behind brands such as Crest toothpaste, Pampers diapers, Tide detergent and most importantly Bounty paper towels and Charmin toilet paper – has been a fluid operator, surpassing the broader market for ‘around 10 percentage points in the entire bear market.
Dow shares in Buffett’s portfolio, it’s also a chip that fell through as a Berkshire Hathaway investment. “data-reactid =” 155 “> Interestingly, while P&G is part of several Dow stocks in Buffett’s portfolio, it’s also a chip that fell by the wayside as a Berkshire Hathaway investment.
Buffett became the owner of P&G through the acquisition of his razor company Gillette in 2005 by his holding company. At the time, Buffett, a major shareholder in Gillette, called the combination a “dream transaction”. Procter & Gamble has become one of the largest equity positions in BRK.B.
This dream did not last very long. The Great Recession eroded the pricing power of large consumer staples like P&G. The company launched a plan to eliminate 100 underperforming brands. The Duracell battery business was on the list and Berkshire bought it in 2014 in exchange for the PG stock. Two years later, Buffett cut 99% of the remaining P&G stake. He has not increased his position since.
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Market value: $ 84.8 billion
Dividend yield: 4.1%
Percentage of portfolio: 0.003%
Date of first acquisition: Q1 2006
Performance since February 19: -7.5%
UPS, $ 98.79) held up particularly well throughout the downturn. While its business services have undoubtedly been cramped due to the coronavirus, the increase in e-commerce shipments, with more people being delivered to their homes, has served as ballast for the international shipper. “Data-reactid =” 183 “> United Parcel Service (UPS, $ 98.79) was particularly resilient throughout the downturn. Although its commercial services were undoubtedly tight due to the coronavirus, the The increase in e-commerce shipments, as people have delivered more to their homes, has served as ballast for the international shipper.
FDX) recently received welcome news, such as Amazon.com (AMZN) announced that it would arrest the pilot of its shipping service, which was in competition with the two legacy suppliers. “data-reactid =” 184 “> In addition, UPS and its rival FedEx (FDX) have recently received welcome news, as Amazon.com (AMZN) has announced that it will discontinue the pilot of its shipping service which was in competition with the two former suppliers.
Too bad that UPS is indeed a pointless position.
With less than 60,000 shares, Berkshire’s stake in United Parcel Service is a rump position, leftovers, a strange lot. Buffett took office as UPS in the first quarter of 2006, purchasing 1.43 million shares valued at approximately $ 113.5 million at the time. This works out to an average price per share of $ 79.38. However, UPS has never grown to become an important part of Berkshire’s portfolio, and Buffett has tied the position over the years, where it would not be surprising if he left the participation at any time.
The reason? Probable performance. Since March 31, 2006, UPS stocks have generated a total return of only 88%, compared to 185% for the overall market.
Translation: UPS, while being among Buffett’s best titles since mid-February, has been a long-term collapse.
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Market value: $ 55.2 billion
Dividend yield: N / A
Percentage of the portfolio: 0.08%
Date of first acquisition: Q4 2019
Performance since February 19: -7.1%
BIIB, $ 316.95) is among Buffett’s most recent actions, and it’s another healthcare game that managed to stay afloat throughout the downturn. The company’s products include a multitude of treatments for MS, including Avonex, Tysabri and Zinbryta, but it also contains drugs for leukemia and hemophilia. “Data-reactid =” 214 “> Biogen (BIIB, $ 316.95) is one of the latest Buffett stocks, and it was another health care game that managed to stay afloat throughout the downturn. The company’s products include a multitude of MS treatments, including Avonex, Tysabri and Zinbryta, although it also has drugs for leukemia and hemophilia.
That said, his fate is currently most strongly linked to his treatment for Alzheimer’s disease. Many expect the company to seek FDA approval for aducanumab this year. And because neither this, nor its current product portfolio, is terribly affected by the coronavirus pandemic, BIIB’s actions suffered minimal losses.
Berkshire Hathaway has many health care facilities, so Biogen is a natural choice. However, at 650,000 stocks worth more than $ 192 million at Berkshire’s latest 13F, this is not a huge issue. It represents less than a tenth of one percent of BRK.B’s equity portfolio, and Berkshire is not even among the top 25 Biogen shareholders by stake size.
Despite Buffett’s history of betting on healthcare, the small size of the stake indicates that this investment could be the idea of lieutenants Ted Weschler or Todd Combs. But the company is inexpensive compared to profits and generates several billion dollars in cash flow each year, so Biogen is perfectly comfortable in the Berkshire portfolio.
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Market value: $ 1 trillion
Dividend yield: N / A
Percentage of the portfolio: 0.41%
Date of first acquisition: Q1 2019
Performance since February 19: -5.9%
AMZN, $ 2,043.00) is one of Berkshire Hathaway’s most splashing new stock picks in the past year. The holding company released its position of 483,300 shares after the first quarter of 2019, then added an additional 54,000 shares in the second quarter. The holding company disclosed its position of 483,300 shares after the first quarter of 2019, then added 54,000 additional shares in Q2.
He was also an unsurprising surpassor throughout the coronavirus epidemic. Not only has its home delivery proven to be vital for its customers as they remain confined to the home, but its Prime Video streaming content becomes more playful. Not to mention, not all businesses that use its Amazon Web Services cloud platform can simply unplug while trying to stay operational.
This was not Buffett’s idea, by his own admission. Before Berkshire Hathaway filed its first quarter regulatory file with the Securities and Exchange Commission, Buffett told CNBC: “One of the fellows in the office that manages the money … bought from the Amazon, so it will appear (when this file is submitted)). “
Buffett has long been an admirer of Amazon CEO Jeff Bezos, he admitted in an interview, and said he wished he had bought the title earlier.
“Yes, I’m a fan and I’m an idiot not to buy,” Buffett told CNBC.
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Market value: $ 135.1 billion
Dividend yield: 0.9%
Percentage of the portfolio: 0.53%
Date of first acquisition: Q1 2001
Performance since February 19: -5.3%
COST, $ 305.97) joined the stock of Buffett a long time ago – the first quarter of 2001, to be precise. It’s not a particularly large stake, representing just over half a percent of Berkshire Hathaway’s portfolio, but it looks dear. “Data-reactid =” 273 “> Costco (COST, $ 305.97) has joined the ranks of the Buffett stocks go back a long time – the first quarter of 2001, to be precise. It is not a particularly important participation, representing just over half a percent of Berkshire Hathaway’s portfolio, but it looks darling.
Unlike many retailers, Costco – and just about any other stock distributing groceries and other necessities – has so far managed to break through the relatively unscathed bear market. Indeed, COST shares are actually up 4% from the start of the year compared to a large loss for the S&P 500. In March, when people in many states were preparing for home orders , Costco saw its overall sales jump by almost 12%. , including a massive 48% increase in online revenue. Sales in January and February were not too shabby either, up 8% and 14% respectively.
And unlike many Buffett stocks, the Oracle is happy to talk at length about Costco.
“Here (Kraft Heinz), 100 years ago and more, tons of advertising, embedded in people’s habits and everything,” Buffett told CNBC in an interview in February 2019. “And now, (Costco’s ) Kirkland, a private label, is coming in and with only around 250 stores, doing 50% more business than all Kraft Heinz brands. “
The 4.3 million shares of Berkshire represent approximately 1% of the capital of the company – not negligible, but well outside the 10 main institutional challenges of Costco.
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Market value: $ 377.7 billion
Dividend yield: 2.7%
Percentage of the portfolio: 0.02%
Date of first acquisition: Q1 2006
Performance since February 19: -3.8%
JNJ, $ 143.26), such as P & amp; G, is another Dow defensive stock that fell out of favor with Buffett. BRK.B’s interest peaked over a decade ago. Now, the diverse health giant represents nothing more than a symbolic position. “Data-reactid =” 304 “> Johnson & Johnson (JNJ, $ 143.26), like P&G, is another Dow defensive stock that fell out of favor with Buffett. BRK.B interest has reached its peak more than ten years ago and the diversified healthcare giant is now nothing more than a symbolic portfolio.
It’s a shame, because JNJ would have provided much needed stabilization in recent months. Although consumers have stopped spending on casinos, airfare and other discretionary costs, they have fallen to make sure they have a lot of Johnson & Johnson products for the long haul: Band-Aid, Benadryl and Tylenol.
But you can’t blame Buffett for being away from J&J, given his story of catchy facets. The health care stock had manufacturing issues and allegations of illegal marketing practices in 2010 and 2011. Buffett criticized the company for these blunders, as well as for using too much of its own stocks in its 2011 acquisition of the Synthes device maker. Disenchanted with Johnson & Johnson, Berkshire gave up most of its stake in 2012.
Berkshire’s current position is only 327,100 shares, which represents approximately 0.02% of the shares outstanding. This is another farm that could go away at any time – without making a big difference either.
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Market value: $ 33.4 billion
Dividend yield: 5.9%
Percentage of the portfolio: 4.32%
Date of first acquisition: Q3 2015
Performance since February 19: Flat
KHC, $ 27.32) could be one of Buffett’s best stocks in recent months. But Warren Buffett probably still regrets participating in what has been one of his biggest deals of the past decade. “Data-reactid =” 333 “> Kraft Heinz (KHC, $ 27.32) could be one of Buffett’s best deeds in recent months. But Warren Buffett probably still regrets participating in what was one of his biggest contracts in the last decade.
Kraft Heinz posted a stable performance against a deeply sagging market thanks to its position as leader in consumer staples. Kraft Heinz is the name of many brands that are seeing their consumption increase because people are forced to stay at home: Heinz condiments, Ore-Ida potato products, Oscar Mayer cold cuts, Classico pasta sauces, Kool-Aid drinks, Maxwell Homemade coffee and, of course, macaroni and Kraft cheese.
In fact, KHC recently announced that the company expects sales growth of 3% in the first quarter – far better than analysts expected, and rare good news for a company that mainly was a problem for Uncle Warren.
Buffett was one of the driving forces behind the 2015 merger of packaged food giant Kraft and ketchup supplier Heinz to form Kraft Heinz. Berkshire Hathaway owns 26.7% of Kraft Heinz, making it the second largest shareholder in the food business. (Private equity firm 3G Capital – which partnered with Berkshire in 2013 to buy HJHeinz – leads at 48.8%.) And it is Berkshire’s sixth capital investment with market value $ 10.5 billion according to the company’s latest Form 13F.
However, Berkshire Hathaway recorded a non-cash loss of $ 3 billion resulting from an impairment of intangible assets in 2018, “resulting almost entirely from our interest in Kraft Heinz,” writes Buffett in his 2019 letter to shareholders. In 2019, KHC depreciated the value of its brands by almost $ 15 billion. And this year, Fitch downgraded the company’s debt to junk status.
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Market value: $ 24.1 billion
Dividend yield: 2.1%
Percentage of the portfolio: 0.23%
Date of first acquisition: Q4 2019
Performance since February 19: + 5.0%
One of Buffett’s best titles since mid-February is one of his latest acquisitions.
KR, $ 31.02) is one of the few retailers allowed to stay open in many states. The country’s largest pure-play supermarket chain is not only an “essential service”, but has experienced frantic purchases as people stock up for their quarantines. “Data-reactid =” 364 “> Kroger (KR, 31,02 $) est l’un des une poignée de détaillants autorisés à rester ouverts dans de nombreux États. La plus grande chaîne de supermarchés pure-play du pays n’est pas seulement un “service essentiel”, mais elle a connu des achats frénétiques alors que les gens s’approvisionnent pour leurs quarantaines.
Cette intensification des activités ne devrait pas disparaître bientôt non plus, car les gens devraient maintenir un certain niveau de distanciation sociale même après le retrait des mandats du gouvernement, quel que soit le moment.
excellente détention de dividendes défensifs dans ce marché baissier en conséquence. “data-reactid =” 366 “> KR a donc été un excellent dividende défensif dans ce marché baissier.
WMT), Amazon.com et d’autres grandes entreprises rivalisent pour régner sur l’épicerie. “Data-reactid =” 367 “> Kroger a certes été un peu effrayant quand Buffett a racheté. De nombreux investisseurs à long terme se sont tournés vers le traditionnel les chaînes de supermarchés dans un monde où Walmart (WMT), Amazon.com et d’autres grandes entreprises rivalisent pour gouverner l’espace épicerie.
AAPL) et StoneCo (STNE“. data-reactid =” 368 “> C’était aussi une sorte de renversement des autres nouvelles positions de Berkshire, qui ont été un peu plus tournées vers l’avenir. Kroger est un jeu de valeur de l’ancienne économie, par rapport aux achats technologiques et biotechnologiques tels comme Amazon, Biogen, Apple (AAPL) et StoneCo (STNE).
Néanmoins, les quelque 2760 magasins d’alimentation au détail de la société – opérant sous des bannières telles que Dillons, Ralph’s, Harris Teeter et son homonyme Kroger – ont donné à Buffett de quoi sourire au cours des derniers mois alors que son portefeuille traverse une période difficile.
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